Medtronic plc (MDT)

Electromedical & Electrotherapeutic Apparatus

Latest Price

$85.39

TTM P/E

22.89

Normalized P/E

25.21

Div Yield

3.33%

Book Value

38.21

P/B Ratio

2.23

Valuation metrics

EPS: $3.73

Book value / share: $38.64

Formula: √(22.5 × EPS × BVPS)

Graham Number

$56.94

33% downside

Norm. op. income: $5.5B (median of 7yr)

Tax rate: 19%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$20.11

76% downside

Base FCF: $5.2B (median of recent 5yr)

Growth: 2%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$41.64

51% downside

EPS: $3.73

Target P/E: 25×

Formula: EPS × P/E

P/E Fair Value

$93.25

+9% upside